- The pair trades in fresh 6-month tops around 112.50/60.
- The greenback remains bid although failed near 95.00.
- US 10-year yields stay sidelined around 2.86%/2.875.
The selling pressure around the Japanese yen remains well and sound so far this week and has now lifted USD/JPY to new 6-month tops in the 112.50/60 band.
USD/JPY looks to trade, data, yields
The up move in the pair comes despite the lack of upside traction in yields of the key US 10-year note, which appear to be consolidating around the 2.86% neighbourhood.
The rally in the pair lost some momentum after US inflation figures for the month of June failed to meet expectations, showing headline consumer prices rising at a monthly 0.1% and core prices up 0.2% MoM.
In the meantime, spot remains vigilant on the US-China trade spat and comments by President Trump in his European tour and ahead of the key meeting with Russia’s V.Putin.
USD/JPY levels to consider
As of writing the pair is gaining 0.45% at 112.50 and a break above 112.62 (high Jul.12) would open the door to 113.00 (psychological level) and finally 113.39 (2018 high Jan.29). On the downside, immediate contention emerges at 110.99 (10-day sma) seconded by 110.60 (21-day sma) and then 110.28 (low Jul.5).
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